Capital Gains Tax Discount

From 21 September 1999, a discount of the amount of the capital gain on which income tax is paid is available when the following conditions are met:

  • a CGT event occurs after 11.45am (by legal time in the ACT) on 21 September 1999
  • the CGT asset was owned for at least 12 months, excluding the days of acquisition and sale

Individuals are entitled to a discount of 50%. An increase in the discount by 10% (to 60%) is provided as part of an incentive for individual resident investors in Affordable Housing from 1 Jan 2018 (subject to passage of legislation).

Complying Super Funds are entitled to a discount of 33⅓%

Companies are excluded.

From after 8 May 2012, foreign or temporary residents are generally not entitled to the CGT discount.  Any entitlement and gains accrued up to that date are apportioned. See CGT and foreign residents

Calculating the net capital gain amount on which tax is payable must be done in the correct sequence. It is a requirement that available capital losses be deducted before subtracting the discount.  Small business concessions are applied after the discount.

See resources:

 

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This page was last modified on 2019-01-03